HomeMy WebLinkAboutContracts & Agreements_143-2022AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of mailing and presort services ("Agreement") is made
and entered in this 5th day ofJuly, 2022 ("Effective Date"), by and between the City of Redlands,
a municipal corporation ("City") and Inland Presort and Mailing Services ("Contractor"). City and
Contractor are sometimes individually referred to herein as a `Party" and, together, as the
"Parties." In consideration of the mutual promises contained herein, City and Contractor agree as
follows:
1.1
ARTICLE I — ENGAGEMENT OF CONTRACTOR
City hereby engages Contractor to provide pickup and processing of first class metered
and/or permit mail on a daily basis, and pickup utility bills to be folded, stuffed, metered
and mailed on a weekly basis for the City Manager's Office and Utility Customer Service
Division for City (the "Services").
1.2 The Services shall be performed by Contractor in a professional manner, and Contractor
represents that it has the skill and the professional expertise necessary to provide the
Services to City at a level of competency presently maintained by other practicing
professional Contractors in the industry providing like and similar types of Services.
ARTICLE 2 — SERVICES OF CONTRACTOR
2.1 The Services that Contractor shall perform are more particularly described in Exhibit "A,"
entitled "Scope of Services," which is attached hereto and incorporated herein by reference.
2.2 Contractor shall comply with applicable federal, state and local laws and regulations in the
performance of this Agreement including, but not limited to, State prevailing wage laws.
ARTICLE 3 — RESPONSIBILITLES OF CITY
3.1 City shall make available to Contractor information in its possession that may assist
Contractor in performing the Services as more particularly described in Exhibit "B", titled
"City Responsibilities," which is attached hereto and incorporated herein by reference,
3.2 City designates Janice McConnell, or her authorized designee, as City's representative with
respect to performance of the courier portion of the Services, and Cindy Tryon, or her
authorized designee, as City's representative with respect to performance of the weekly
Utility Billing portion of the Services, as City's representative with respect to performance
of the Services, and such person shall have the authority to transmit instructions, receive
information, interpret and define City's policies and decisions with respect to performance
of the Services.
ARTICLE 4 — PERFORMANCE OF SERVICES
4. t The term of this Agreement shall be for a period of one (1) year from the Effective Date of
this Agreement (the "Initial Term") and will end on June 30, 2023. The City shall have
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the option to extend the Initial Term of this Agreement by two (2) additional one-year terms
(each, an "Extended Tenn"), on the same terms and conditions, by providing written notice
to Contractor at least thirty (30) days prior to the expiration of the initial Term or any
Extended Tenn.
4.2 If Contractor's Services include deliverable electronic visual presentation materials, such
materials shall be delivered in a form, and made available to the City, consistent with City
Council adopted policy for the same. It shall be the obligation of Contractor to obtain a
copy of such policy from City staff.
ARTICLE 5 —PAYMENTS TO CONTRACTOR
5.1 The total compensation for Contractor's performance of the Services shall not exceed the
amount of one hundred fifteen thousand dollars ($115,000) for the Services provided
during the initial Term, Should this Agreerent be extended, the compensation for
Contractor's performance for the Services shall not exceed the amount of one hundred
fifteen thousand dollars ($I 15,000) for the first Extended Term; and one hundred fifteen
thousand dollars ($115,000) for the second Extended Term, bringing the total possible
amount of compensation to a not -to -exceed amount of three hundred thousand dollars
($345,000), For the Initial Term and each Extended Term, City shall pay Contractor on a
titne and materials basis up to the not to not -to -exceed amount in accordance with the rates
specified in Exhibit "C," titled "Price List," which is attached hereto and incorporated
herein by this reference
5.2 Contractor shall submit monthly invoices to City describing the Services performed during
the preceding month. Contractor's invoices shall include a brief description of the Services
performed, the dates the Services were performed, the number of hours spent and by whom,
and a description of reimbursable expenses related to the Services. City shall pay
Contractor no later than thirty (30) days after receipt and approval by City of Contractor's
invoice.
5.3 Any notice or other communication required, or which may be given, pursuant to this
Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date
of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return
receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or
(iv) on the date sent by facsimile or electronic mail transmission (including PDF), if
confirmed with a copy sent contemporaneously by first class, certified, registered or
express mail; in each case properly posted and fully prepaid to the appropriate address set
forth below, or such other address as a Party may provide notice in accordance with this
section:
CITY
City Clerk
City of Redlands
35 Cajon Street
P.O. Box 3005 (mailing)
CONTRACTOR
Nick R. Chudasama, Owner
Inland Presort and Mailing Services
2025 Park Avenue, #7
Redlands, CA 92373-6274
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Redlands, CA 92373
jdonaldson@cityofi•edlands.org
(909) 798- 7531
nrchudasama@inlandpresort.co
m (909) 307-1300
ARTICLE 6 - INSURANCE AND INDEMNIFICATION
6.1 The following insurance coverage required by this Agreement shall be maintained by
Contractor for the duration of its performance of the Services. Contractor shall not perform
any Services unless and until the required insurance listed below is obtained by Contractor.
Contractor shall provide City with certificates of insurance and endorsements evidencing
such insurance prior to commencement of the Services. Insurance policies shall include a
provision prohibiting cancellation or modification of the policy except upon thirty (30)
days prior written notice to City.
A. Workers' Compensation and Employer's Liability insurance in the amount that meets
statutory requirements with an insurance carrier acceptable to City, or certification to
City that Contractor is self -insured or exempt from the workers' compensation laws of
the State of California. Contractor shall execute and provide City with Exhibit "D"
entitled "Workers' Compensation Insurance Certification," which is attached hereto
and incorporated herein by this reference prior to performance of the Services.
B. Comprehensive General Liability insurance with carriers acceptable to City in the
minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million
Dollars ($2,000,000) aggregate, for public liability, property damage and personal
injury is required. City shall be named as an additional insured and such insurance shall
be primary and non-contributing to any insurance or self-insurance maintained by City.
C. Contractor shall secure and maintain professional liability insurance throughout the
term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim
made.
D. Business Auto Liability coverage, with minimum limits of One Million Dollars
($1,000,000) per occurrence, combined single limit bodily injury liability and property
damage liability, This coverage shall include all Contractor owned vehicles used in
connection with Contractor's provision of the Services, hired and non -owned vehicles,
and employee non -ownership vehicles. City shall be named as an additional insured
and such insurance shall be primary and non-contributing to any insurance or self-
insurance maintained by City.
E. Contractor is expressly prohibited from assigning or subcontracting any of the Services
without the prior written consent of City. In the event of mutual agreement by the
Parties to assign or subcontract a portion of the Services, Contractor shall add such
assignee or subcontractor as an additional insured to the insurance policies required
hereby and provide City with the insurance endorsements prior to any Services being
performed by the assignee or subcontractor.
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6.2 Contractor shall defend, indemnify and hold harmless City and its elected officials,
employees and agents from and against any and all claims, losses or liability, including
attorneys' fees, arising from injury or death to persons or damage to property occasioned
by any negligent act or omission by, or the willful misconduct of, Contractor, or its officers,
employees and agents in performing the Services.
ARTICLE 7 — CONFLICTS OF INTEREST
7.1 Contractor covenants and represents that it does not have any investment or interest in any
real property that may be the subject of this Agreement or any other source of income,
interest in real property or investment that would be affected in any manner or degree by
the performance of Contractor's Services. Contractor further covenants and represents that
in the performance of its duties hereunder, no person having any such interest shall perform
any Services under this A.greement.
7.2 Contractor agrees it is not a designated employee within the meaning of the Political
Reform Act because Contractor:
A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law;
(ii) issue, deny, suspend or revoke any City permit, license, application,
certification, approval, order or similar authorization or entitlement;
(iii) authorize City to enter into, modify or renew a contract;
(iv) grant City approval to a contract that requires City approval and to which
City is a party, or to the specifications for such a contract;
(v) grant City approval to a plan, design, report, study or similar item;
(vi) adopt, or grant City approval of, policies, standards or guidelines for City
or for any subdivision thereof.
l3. Does not serve in a staff capacity with City and in that capacity, participate in
making a governmental decision or otherwise perform the same or substantially the
same duties for City that would otherwise be performed by an individual holding a
position specified in City's Conflict of Interest Code under Government Code
section 87302,
7.3 In the event City determines that Contractor must disclose its financial interests, Contractor
shall complete and file a Fair Political Practices Commission Form 700, Statement of
Economic interests, with the City Clerk's office pursuant to the written instructions
provided by the City Clerk.
ARTICLE 8 — GENERAL CONSIDERATIONS
8,1 In the event any action is commenced to enforce or interpret any of the terms or conditions
of this Agreement the prevailing Party shall, in addition to any costs and other relief, be
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entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-
house counsel by a Party.
8.2 Contractor shall not assign any of the Services, except with the prior written approval of'
City and in strict compliance with the terms and conditions of this Agreement. Any
assignmentor attempted assignment without such prior written consent may, in the sole
discretion of City, results in City's immediate termination of this Agreement.
8.3 Contractor is for all purposes under this Agreement an independent contractor and shall
perform the Services as an independent contractor. Neither City nor its agents shall have
control over the conduct of Contractor or Contractor's employees, except as herein set
forth. Contractor shall supply all necessary tools and instrumentalities required to perform
the Services. Assigned personnel employed by Contractor are for its account only, and in
no event shall Contractor or personnel retained by it be deemed to have been employed by
City or engaged by City for the account of, or on behalf of City. Contractor shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent, nor shall Contractor have any authority, express or implied, to bind City to any
obligation.
8,4 This Agreement may he terminated by City, in its sole discretion, by providing not less
than five (5) days prior written notice to Contractor of City's intent to terminate. If this
Agreement is terminated by City, an adjustment to Contractor's compensation shall he
made, but (1) no amount shall be allowed for anticipated profit or unperformed Set -vices,
and (2) any payment due Contractor at the time of termination may he adjusted to the extent
of any additional costs to City occasioned by any default by Contractor. Upon receipt of a
termination notice, Contractor shall immediately discontinue its provision of the Services
and, within five (5) days of the date of the termination notice, deliver or otherwise make
available to City, copies (in both hard copy and electronic form, where applicable) of
project related data, design calculations, drawings, specifications, reports, estimates,
summaries and such other information and materials as may have been accumulated by
Contractor in performing the Services. Contractor shall be compensated on a pro-rata basis
for Services completed up to the date of termination.
8.5 Contractor shall maintain books, ledgers, invoices, accounts and other records and
documents evidencing costs and expenses related to the Services for a period of three (3)
years, or for any longer period required by law, from the date of final payment to Contractor
pursuant to this Agreement. Such books shall be available at reasonable times for
examination by City at the office of Contractor.
8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the
entire agreement and understanding between the Parties as to the matters contained herein,
and any prior negotiations, written proposals or verbal agreements relating to such matters
are superseded by this Agreement. Except as otherwise provided for herein, any
amendment to this Agreement shall be in writing, approved by City and signed by City and
Contractor.
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8.7 This Agreement shall be governed by and construed in accordance with the laws of the
State of California, without regard to its conflicts of laws provisions. The Parties agree that
all actions or proceedings arising in connection with this Agreement shall be tried and
litigated only in the state courts located in San Bernardino County, California, and the
federal courts located in Riverside County, California,
8.8 if one or more of the sentences, clauses, paragraphs or sections contained in this Agreement
is declared invalid, void or unenforceable by a court of competent jurisdiction, the same
shall be deemed severable from the remainder of this Agreement and shall not affect,
impair or invalidate the remaining sentences, clauses, paragraphs or sections contained
herein, unless to do so would deprive a Party of a material benefit of its bargain under this
Agreement.
EN WITNESS WHEREOF, duly authorized representatives of City and Contractor have
signed in confirmation of this Agreement.
CITY OF REDLANDS INLAND PRESORT AND MAILING
SERVICES
By: C � �� � �-- By: --)'A
Paul T. Barich, Mayor Nick R. Chudasama, Owner
ATTEST:
ne Donaldson, City Clerk
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EXHIBIT" 'A"
SCOPE OF SERVICES
1. Contractor will provide courier service to City. Contractor will pick up the incoming mail
from City's two separate PO Boxes located at New York Post Office by 1 1:00 am and will
drop it off at Redlands City Hall, 35 Cajon Street, Redlands, CA 92373.
2. Contractor picks up all first-class letter and flat mail from Redlands City Hall, 35 Cajon
Street, Redlands, CA 92373, between 4:00 and 4:30 pm.
3. Contractor driver will check the delivery slip, tray count, etc. The driver will sign the
delivery slip and will return a copy to City for the records. The driver will keep letter and
flat mail separate.
4. The driver will bring all the mail from the City along with other customer's mail to
Contractor's facility. Mail checkers and supervisor check and separate the letter and flat
mail for sorting by machine, or by hand. The mail will be taken to the Multi -Line Optical
Character Reader (MLOCR) for barcoding and sorting.
5. After barcoding and sorting is done, the mail is randomly tested and verified by United
States Postal Service (USPS) officials. All the sorted mail is collected and put in a cage,
and dropped off at the San Bernardino Distribution Center.
6. All the first-class mail will be delivered to USPS on the same day as it was picked up.
7. Contractor will pick up every Thursday printed Utility Bills and reminder notices from the
City's Utility Customer Service Office. City does not need to sort in zip code order.
8. Contractor will tri-told bill or notice, insert it along with return envelope and additional
insert if any to be inserted into the envelope provided by the City.
9. The inserted bill will be sorted on the MLOCR along with the other mail.
10. Contractor will deliver mail to the Post Office the next day after we receive the bills.
11. The mail will be comingled and Contractor will pay the postage from their permit and bill
the City for the applied postage at the then current USPS pre-sorted first class rate.
12. In the event of an observed legal holiday by the City or LISPS, a one- or two-day adjustment
of pickup and delivery will be required.
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EXHIBIT "B"
CITY RESPONSIBILITIES
1. City shall meter all first-class mail at prevailing pre-sorted first-class rate as approved by
the USPS.
2. City shall place all metered mail in USPS supplied trays or tubs facing the same direction.
The City will keep full postage mail, flat size mail or any special mail separate from its
pre-sort mail.
3. City shall apply proper endorsements such as pre-sorted first class and current date for all
first class metered mail as required by IJSPS.
4. City shall provide accurate count of all pre-sorted first class metered and permit mail and
shall provide a signed copy of a mailing slip at the time of pick-ups,
5. City shall allow multiple pick-ups on heavy volume mailing days, if any, in order to process
the mail one time by the Contractor.
6. City shall provide a fully executed USPS Form 8096 and Form 6014 to the Contractor prior
to Contractor's commencement of the Services to facilitate Contractor's application to
USPS for Value Added Rebate and FastForward service on City's mail.
7. City shall obtain "Drop Shipment Authorization" permit, if required, from USPS and
endorse all metered First -Class Mail with proper permit number.
8. City shall provide Contractor with a six-month mailing and return envelopes to be stored
by Contractor at their facility for Utility Bill inserting services.
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Courier Service
Pick up incorning mail from
two PO Boxes and deliver to
City Hall by 11:00 am
(Monday — Thursday & every other
Friday)
EXHIBIT "C"
PRICE LIST
Rate
$210.00
Daily First -Class Mail Piek uP from City Hall
Letter*
Flat*
Weekly Utility Billing Services
$0.020
$0.520
Unit
Per Week
Per Piece
Per Piece
Fold (1) $0,015 Per Piece
Insert (up to 2) $0.037 Per Piece
Meter $0.020 Per Piece
Each Additional Insert $0,013 Per Piece
Sort / Mail* $0.020 Per Piece
Postage Pass-Thru
Postage* $0.494
*Prevailing First Class Presorted Rate
*Subject to change when USPS changes postal rates
Potential Postage Savings - Packages / Priority Mail
Per Piece
Potential Postage Savings for Parcels / Packages $0.040 - $0.200 per piece
Potential Postage Savings for Priority Mail $0.250 - $0.400 per piece
The above prices will remain the same thru end of 2025 fiscal year.
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EXH [B1T "C"
CURRENT USPS RATES
LISPS is allowing the same presorted letter rates up to 3.5 ounces.
Rates for First -Class Letter size mail at Presorted Rate (as follows).
Weight (ounces) Presorted Rate
0-3.5
Post Cards — a
$0.494
$0.335
a. Rates shown apply to each single or double postcard when originally mailed; reply
half of double postcard must be designed for reply mail purposes only.
Rates for First Class Flat size mail at 5-Digit rate (as follows).
Weight Not Over 5-Digit Rate
1 oz.
2 oz.
3 oz.
4 oz.
5 oz.
6 oz.
7 oz.
8 oz.
9 oz.
10 oz.
11 oz.
12 oz.
13 oz.
$0.555
$0.755
$0.955
$1.155
$1.355
$1.555
$1.755
$1.955
$2.155
$2.355
$2.555
$2.755
$2.955
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EXHIBIT "D"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of the
following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly
authorized to write compensation insurance in this State,
(b) By securing from the Director of Industrial Relations, a certificate of consent to
self -insure, either as an individual employer, or as one employer in a group of
employers, which may be given upon furnishing proof satisfactory to the Director
of Industrial Relations of ability to self -insure and to pay any compensation that
may become due to his or her employees.
CHECK ONE
V I am aware of the provisions of Section 3700 of the Labor Code which requires every
employer to be insured against liability for Workers' Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and I will comply with such provisions before
commencing the performance of the work and activities required or permitted under this
Agreement. (Labor Code §1861).
_ I affirm that at all times, in performing the work and activities required or permitted under
this Agreement, I shall not employ any person in any manner such that I become subject to the
workers' compensation laws of California, However, at any time, if I employ any person such that
i become subject to the workers' compensation laws of California, immediately I shall provide the
City with a certificate of consent to self -insure, or a certification of workers' compensation
insurance.
1 certify under penalty of perjury under the laws of the State of California that the information and
representations made in this certificate are true and correct.
INLAND PRESORT AND MAILING SERVICES
By:_'?n \ ��Q a„-",
Nick R. Chudasama, Owner
Date: G. ZT • 2_.D t 2
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